Alliance Global Q1 profit up 18% to P4.91B

Alliance Global Group Inc. (AGI), one of the country’s largest conglomerates, registered an 18-percent improvement in its profit for the first quarter, on the back of the current macroeconomic conditions that eventually drove the income of its property, and food and beverage arms up significantly.

The Andrew Tan-led holding company reported to the Philippine Stock Exchange on Wednesday that its net profit grew to P4.91 billion, up 18 percent from P4.15 billion a year ago.

The group’s consolidated revenues also grew to P30.39 billion in the first three months of 2013, a 25-percent increase from P24.38 billion a year ago.

“We believe the current macroeconomic conditions will contribute positively to our various businesses, from consumer and property to BPO [business process outsourcing]and tourism—all growth drivers of the Philippine economy. These businesses will hit double-digit growth in revenues and net profits,” said AGI Chairman Andrew Tan.

AGI’s growth was led by its main subsidiaries Megaworld Corp., Emperador Distillers Inc. and Travellers International Hotel Group Inc., which collectively contributed 84 percent of the conglomerate’s net profit.

The group’s real estate arm Megaworld contributed around 34 percent to AGI’s net income and about 26 percent to its total revenue.

Megaworld also reported total revenues of P8.1 billion in the first three months of 2013, up 16 percent year-on-year from P7 billion.

Its net profit, on the other hand, amounted to P1.8 billion, up from P1.6 billion, a 15 percent increase year-on-year. Revenues and profits from the rest of AGI’s portfolio of businesses also grew in line with targets.

Besides real estate, AGI has interests in industries such as food and beverage, quick service restaurants and integrated tourism estates.

Food and beverage arm Emperador also reported an increase of total revenues to P6.5 billion, up 17 percent from P5.5 billion, while its net profit jumped 40 percent to P1.4 billion from P1 billion.

The company also produces Emperador Gold and Emperador Light brandies, and a line of flavored alcoholic beverages called The Bar. It recently introduced Emperador Deluxe, which is bottled in Spain.

Moreover, Travellers posted total revenues of P10.5 billion in the first three months, up 47 percent from P7.1 billion. Its net profit grew to P995 million from P854 million, up 16 percent year-on-year.

Travellers operates Resorts World Manila, the first integrated tourism estate in the country. Resorts World Manila is located in Newport City, set across from Terminal 3 of the Ninoy Aquino International Airport in Pasay City.

The other subsidiaries of AGI, led primarily by Global-Estate Resorts Inc. (GERI) and Golden Arches Development Corp. (GADC), also posted strong earnings.

GADC operates the quick service restaurant business under the McDonald’s brand. From 375 stores in 2012, GADC is planning to expand to 500 stores nationwide by 2015.

GERI, for its part, develops integrated tourism estates in strategically located tourism hot spots such as Boracay, Tagaytay and Batangas.